Toronto lingerie line Knix Wear gets unexpected crowdfunding boost

Crowdfunding is building a reputation for financing enterprises and products that don’t fit into an easy niche.

And Knix Wear founder Joanna Griffiths got an unexpected publicity boost when she launched a fundraising drive for her high-tech lingerie line on the crowdfunding site Indiegogo — it happened as the site was hosting Gawker’s notorious money-raising drive to buy an alleged video of Toronto mayor Rob Ford smoking crack.

“For us, it helped” promote the line of absorbent and scent-resistant underwear catering to women who exercise heavily or experience light incontinence, Ms. Griffiths said, chuckling. “When I met with the buyers at Hudson’s Bay, they knew about Indiegogo because of the Rob Ford video campaign. I believe if it had been two weeks earlier, it would have been a much harder thing to position because it just was not on people’s radar to the same extent as it was following that [Crackstarter] campaign in May.”

Hudson’s Bay, which will carry the line in 18 of its 90 stores, became Knix Wear’s first retail customer — the first time a retailer has placed a preorder through a crowdfunding campaign site.

When she created Knix Wear, Ms. Griffiths looked to the success of now-billionaire Sarah Blakely, the young entrepreneur who founded Spanx, the popular slimming undergarment, in 2000.

Like Ms. Blakely, Ms. Griffiths identified a void in the market for her product, which she began envisioning after a talk with her mother, a doctor, about the light incontinence that one in three experience in their lives, particularly after childbirth and with the onset of menopause.

“I had seen all of these panty-liners and pads in the drugstore aisles, and I thought there had to be a better solution,” said the Toronto-based entrepreneur, who studied business and worked in entertainment and promotion before she began developing Knix Wear. She interviewed hundreds of women and gynecologists while she researched her business idea.

“It is the secret nobody talks about. There is a whole side of the market that is not being addressed. Most products only cater to the aging demographic and through research I discovered many younger women were very vocally discussing their dissatisfaction with existing products. We wanted to make an underwear upgrade — something beautiful and discreet — compared to what is on the market.”

Knix Wear products feature a one-way wicking cotton that wicks moisture into an absorbent layer and it has a leak resistant membrane on the bottom. Threads of silver, a natural anti-microbial odour-buster used by Lululemon in its Silverescent line of its garments, are woven through the fabric.

We wanted to make an underwear upgrade — something beautiful and discreet — compared to what is on the market

Unconventionally packaged in eye-catching polka-dot tubes, Knix Wear won a $20,000 prize for best business idea last year through the INSEAD Business Venture Competition and the women’s entrepreneurship award. Ms. Griffiths secured further startup funds through a $15,000 loan from Canada Youth Business Foundation, and $100,000 of her own funds.

The idea to crowdfund for additional capital came as the company was aiming to finance part of a sizable first production run. Ms. Griffiths also wanted to get feedback and research from consumers.

“We wanted to put the idea out there as close to completion as possible in order to react to customer feedback and make small modifications so that when we go to market we were even more confident in the product that we are providing.”

Women in their mid-20s to mid-50s are the broader target for the underwear, which sells for $28 to $38 per pair. “We are going after new moms and women who love to exercise, so more specifically in their 30s and early 40s.”

A key piece of advice in the crowdfunding campaign was that Indiegogo customers wanted more higher-rise styles than Knix Wear had on offer.

“There was also a demand for plus sizes,” Ms. Griffiths said. “We were able to react and respond to that before completing our first production run. Crowdfunding was really great for that reason.”

Early signs of the campaign were encouraging. It launched May 2 on Indiegogo, and raised more than $60,000 in 44 days. The company is taking preorders on its KnixWear.com website and begins shipping the third week of July.

Mary Anne Morin, a general merchandise manager and senior vice-president in the apparel department at Hudson’s Bay, which has seen a style upswing under the stewardship of former Holt Renfrew exec Bonnie Brooks, said buyers liked Knix Wear because it provides distinctive product groups. They also liked the “smart, tasteful” packaging, she said. “Perhaps most importantly, it is a unique product in the North American marketplace,” she said, adding the retailer’s buyers are always on the lookout for relevant brands that will appeal to its consumers.

“If that commitment means taking an unconventional route, we will explore it,” she said. “HBC is always looking at ways to innovate, and Hudson’s Bay being the first Canadian retailer to purchase product through the crowdfunding site Indiegogo is another example of that innovation.”

Ms. Griffiths has a first-year sales target of $900,000, and aims to distribute Knix Wear through 100 stores across North America.

Sales reps will also target fitness studios and sporting goods stores as other avenues for growth, as well as lingerie and maternity stores.

Another growth possibility is to create a lower priced Knix Wear line for mass retail, much like Spanx founder Sarah Blakely did with the spin-off line Assets.

She sees Europe, and the U.K. in particular, as another promising market for future expansion. “I think Knix Wear and high-tech knickers will really resonate over there, ever more so than here. It’s a fun word, and we are bringing it back.”